Sponsored by:
Senator JOHN F. MCKEON
District 27 (Essex and Passaic)
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Travel Insurance Act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning travel insurance and supplementing Title 17 of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the Travel Insurance Act.
2. The Legislature finds and declares that:
a. The purpose of this act is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this State.
b. The requirements of P.L. , c. (C. ) (pending before the Legislature as this bill) shall apply to travel insurance policies that cover any resident of this State, and are sold, solicited, negotiated, or offered in this State, and policies and certificates are delivered or issued for delivery in this State. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to cancellation fee waivers or travel assistance services, except as expressly provided herein.
c. All other applicable provisions of this States insurance laws shall continue to apply to travel insurance except that the specific provisions of P.L. , c. ) (C. ) (pending before the Legislature as this bill) shall supersede any general provisions of law that would otherwise be applicable to travel insurance.
3. As used in this act:
Aggregator site means a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping.
Blanket travel insurance means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group.
Cancellation fee waiver means a contractual agreement between a supplier of travel services and its customer to waive some or all of the non-refundable cancellation fee provisions of the suppliers underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement. A cancellation fee waiver is not insurance.
"Commissioner" means the Commissioner of Banking and Insurance.
Eligible group means two or more persons who are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, including but not limited to:
(1) any entity engaged in the business of providing travel or travel services, including but not limited to: tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers or the operator, owner, or lessor of a means of transportation of passengers, including but not limited to airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein with regard to any particular travel or type of travel or travelers, all members or customers of the group have a common exposure to risk attendant to the travel;
(2) any college, school, or other institution of learning, covering students, teachers, employees, or volunteers;
(3) any employer covering any group of employees, volunteers, contractors, board of directors, dependents, or guests;
(4) any sports team, camp, or sponsor thereof, covering participants, members, campers, employees, officials, supervisors, or volunteers;
(5) any religious, charitable, recreational, educational, or civic organization, or branch thereof, covering any group of members, participants, or volunteers;
(6) any financial institution or financial institution vendor, or parent holding company, trustee, or agent of or designated by one or more financial institutions or financial institution vendors, including accountholders, credit card holders, debtors, guarantors, or purchasers;
(7) any incorporated or unincorporated association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of the association covering its members;
(8) any trust or the trustees of a fund established, created or maintained for the benefit of and covering members, employees or customers, subject to the commissioner permitting the use of a trust and the States premium tax provisions in section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) of an association meeting the requirements of paragraph (7) of this section;
(9) any entertainment production company covering any group of participants, volunteers, audience members, contestants, or workers;
(10) any volunteer fire department, ambulance, rescue, police, court, or any first aid, civil defense, or other such volunteer group;
(11) preschools, daycare institutions for children or adults, and senior citizen clubs;
(12) any automobile or truck rental or leasing company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, the operator, owner or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder under a policy to which this section applies; or
(13) any other group where the commissioner has determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest.
Fulfillment materials means documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plans coverage and assistance details.
Group travel insurance means travel insurance issued to any eligible group.
Limited lines travel insurance producer means a:
(1) licensed managing general agent or third-party administrator,
(2) licensed insurance producer, including a limited lines producer, or
(3) travel administrator.
Offer and disseminate means providing general information, including a description of the coverage and price, as well as processing the application and collecting premiums.
Primary certificate holder means an individual person who elects and purchases travel insurance under a group policy pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Primary policyholder means an individual person who elects and purchases individual travel insurance pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Travel administrator means a person who directly or indirectly underwrites, collects charges, collateral or premiums from, or adjusts or settles claims on residents of this State, in connection with travel insurance, except that a person shall not be considered a travel administrator if that persons only actions that would otherwise cause it to be considered a travel administrator are among the following:
(1) a person working for a travel administrator to the extent that the persons activities are subject to the supervision and control of the travel administrator;